Xbox One per unit (Console) price.

You are not going to get anything official ElectroFlying. If there was an official release I am sure it would have been discussed. And these estimates can be off by a decent %. They have no way of knowing the deal that was made so they estimate. Unless
they have inside information. I have saw plenty of these for devices where they take the prevailing cost of parts when considering bulk pricing and go from there. I have seen a few where they just straight up went with retail and not even the bulk pricing.

 

Make this easier for you guys.

IHS is a very reliable source in these matters.

[table][tr][td]Components/Hardware[/td][td]Cost Estimates Xbox One[/td][/tr][tr][td]Retail Pricing[/td][td]499.00[/td][/tr][tr][td] Bill Of Materials[/td][td]457.00[/td][/tr][tr][td]Manufacturing[/td][td]14.00[/td][/tr][tr][td]471.00[/td][/tr][tr][/tr][tr][td]Console[/td][/tr][tr][td]CPU/GPU[/td][td]110.00[/td][/tr][tr][td]DRAM[/td][td]60.00[/td][/tr][tr][td]Optical Drive[/td][td]32.00[/td][/tr][tr][td]Hard Drive[/td][td]37.00[/td][/tr][tr][td]Mechanical/Electric-Mechanical[/td][td]43.00[/td][/tr][tr][td]Other (Electronic)[/td][td]50.00[/td][/tr][tr][td]Console Sub Total[/td][td]332.00[/td][/tr][tr][td]Controller[/td][td]15.00[/td][/tr][tr][td] Kinect[/td][td]75.00[/td][/tr][tr][td] Power Supply[/td][td]25.00[/td][/tr][tr][td]Other Box Contents[/td][td]10.00[/td][/tr][/table]

 

^ Precisely my point Guerrero.

So anyone who goes looking for answers is only going to find what the mainstream puts out, with no way of Officially, or Unofficially refuting their claims.

Yet, somewhere somehow I am confident the Official figures, and where it all ties in will come to light.

 

@ Bird: So $471.00 to manufacture etc. Minus current sale prices = a net lose of some $125.00 per unit.

So lets fracture in Vaynel's ~ "Publishers have to pay a license fee to have their game on the console. Live Gold makes a shed load of money."

Live = $60.00 a year, but a good chunk of that is generated via the 360 console. And we've no way of knowing how much in licenses fee's costs say. EA for having the X1 carry their titles.

And lets not forget. You have server costs, human costs, (< Sure they don't work for free) promotional/ad costs etc, etc, etc.

Which, no matter how you slice it. Brings us back to square one again.

 

I understand Electro. I do believe that when they take it apart. See the architecture, evaluate each piece do what Ultimo said, and see that it is around 471$ and put it out there.

But that is what we are doing here isn't it? Guessing and Speculating?

I mean, I do believe that Xbox One does cost about 470 bucks to make. I do believe Phil Spencer when he said he does not care "how much we lose" (with each console sold) they just want the consumers happy with the product.

 

Here's a good quote from the same article I posted that pretty much sums up their strategy.

“The Xbox One is designed to serve as a beachhead in the home for Microsoft, with the console’s capability to interact with—and interface to—other devices, such as televisions, set-top boxes, smartphones and tablets,” Mather noted. “Gaining such a strategic
advantage in the battle to control the connected home and Internet-enabled living room is well worth having the Xbox One act as a loss leader for Microsoft.”

 

If it comes to light I would think it would be after the Xbox One life span. When the next console is out. And it will be more of talking about how prices dropped over time, Kinect being unbundled, things like that.

And lets say that those estimates are correct. The price has absolutely come down a decent bit on those parts in this time. And look at Kinect. They dropped that and dropped $100 off the price for the Kinect-less bundle. I had seen some estimates that
the Kinect was $100 or more to make. Not to mention this:

"Two days ago, a confirmed Microsoft Xbox One developer did an Ask Me Anything (AMA) session on Reddit in which he dropped a number of tidbits on the console’s design, Microsoft’s plans for the project, internal opinion on the always-on DRM fiasco, and how
Microsoft had interpreted the feedback from that event. One of the startling facts of the session was his claim that the Xbox One’s Kinect sensor is nearly as expensive as the console itself."

This is a MS developer that claimed that the Kinect sensor was nearly as expensive as the console itself. Now, was that true? I am not in a place to say it is or is not. But it shows how much guessing is done. I know this information supposedly came
from a verified MS developer and a Reddit AMA session. Did the Kinect 2.0 cost that much? Or how much? Really only someone with first hand knowledge can tell. Not some estimate. And it implies the console was only half of the original cost to MS.

 

"I do believe Phil Spencer when he said he does not care "how much we lose" (with each console sold) they just want the consumers happy with the product."

I believe Phil here. And I believe it is a smart move. They want to install themselves as the dominate content provider. They are realizing that by keeping customers happy and engaged they can reap the $$. Sure, it is all about $$ but happy customers
lead to those $$. Not just theirs but also by telling friends.

MS just seems different here. They have become much more consumer focused. Listening. Trying things that customers want even with the "almost impossible" look to it. I think that has some to do with the Xbox division. They see the potential to become
the center of the entertainment experience. And losing money on devices now is an investment of those $$. It comes back later. And Xbox will be the brand that pushes this. It will be the service, even on PC, that MS uses to push content.

 

"But that is what we are doing here isn't it? Guessing and Speculating?"

-

It may be what you are doing, but I would like to steer clear of any of that myself. Oh, sure you guy's can do as much guessing/speculating as you like.

But with economies worldwide struggling to maintain a foothold in this "New economy." I am curious as to why any company would be willing to accept loses just to.

"The Xbox One is designed to serve as a beachhead in the home for Microsoft, with the console’s capability to interact with—and interface to—other devices, such as televisions, set-top boxes, smartphones and tablets,” Mather noted. “Gaining such a strategic
advantage in the battle to control the connected home and Internet-enabled living room is well worth having the Xbox One act as a loss

leader for Microsoft.” ???

 

All respect intended Electro. As I do enjoy polite discussion. If you are looking for facts, only Microsoft has the specifics. We do know how much it makes to build Xbox One. And we do know how much they are selling it for.

We do know Xbox Live for Xbox 360 is bringing in big revenue. (Xbox 360 is still part of the Xbox division).

Microsoft is not invincible, but they run their business brilliantly.

They have made mistakes, but they are very quick to cut the head off.

 

^ So does China, as in the "Tainted baby's milk" debacle. But that does not explain why didn't catch it before hand.

Yes. Microsoft has the specifics, and they aren't saying a word.

Anywho: In all this. I'm still no closer to finding any specific answers. But thanks for the polite discussion, and if possible. Keep posting if you ever find any more info on the subject.

 

If you want specific answers,ask directly to Microsoft and Xbox.

But from the past,none of these are known,just speculations.

"we" don't even have specific/official answers for "dead" consoles (original Xbox).

The only guess we can have it's ,if Microsoft keep doing it that means they make some profits one way or another.

At the end of day none of these profits will go in our pockets,anyway.

Profits or non profits,really doesn't matter to me,only Microsoft supports Xbox and Xbox studios,really matters.

 

Where are you taking this thread Electro? You are coming across as Xbox is the heart of MS. Regardless of losses (if that is the case) for console sales, MS has huge contracts with the Military, private sectors, etc.... MS or Sony wouldn't be releasing
consoles IF they weren't making money somewhere in the whole scheme of things...

 

Talk about the worst console ever made (the PlayStation 4) and find out the per unit (console) price for it.

 

I recall the Xbox One was not losing money on each console sold when it 1st released - MS actually stated this then. The opposite was true - they were actually making a profit. I'll have to go look and dig it up for you guys.

As of now though, with the prices of the consoles going down without the Kinect and various bundles, I'm not so sure if that's true anymore and am more likely to believe Doc's assessment.